PENSIONS and savings were hit again yesterday as the value of shares plunged by billions of pounds.

The FTSE 100 share index sank below the 5000 mark once more as fears intensified that Greece may default on its debts and potentially sink the euro.

But this time there was no recovery, with the index closing the day at 4944. The 3 per cent plunge followed its worst quarter for nine years when it lost nearly 14 per cent of its value.

Banks were the biggest losers after Eurozone finance minister delayed a decision over whether to pay Greece the next tranche of its bailout money. Greece has admitted it cannot meet its deficit reduction strictures.

Kathleen Brooks, of Forex, said: “As the EU’s high command dallies about how to help Greece, nations have to prop up their banking sectors. This is totally dysfunctional.”